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Gems & Jewellery export from India

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Export of Indian Gems and Jewellery Sector

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Gems & Jewellery export from India

  1. 1. EXPORT OF GEMS & JEWELLERY SECTOR Submitted By ~ Guided By ~ Isha Joshi Prof. Shubhangi Jain BFT – V semester
  2. 2. INTRODUCTION The Gems and jewelry sector in India plays a significant role in the Indian economy GDP contribution – 6-7% Focus area for export promotion based on its potential for growth and value addition India is deemed to be the hub of the global jewellery market because of its low costs and availability of high-skilled
  3. 3. India is the world’s largest cutting and polishing centre for diamonds India exports 95 per cent of the world’s diamonds Contributes in a big way to the country's Foreign Exchange Earnings (FEEs) Sector is viewed as a thrust area for export promotion In FY14, India's gems and jewellery sector contributed US$ 34,746.90 million to the country's FEEs
  4. 4. MARKET STRUCTURE
  5. 5. The Jewellery Market in India is expected to grow at a CAGR of 15.95 per cent over the period 2014-2019 In December 2014 – I. The gold jewelry exports were US$ 554.45 million II. silver jewellery exports were US$ 148.49 million  The cumulative foreign direct investment (FDI) inflows in diamond and gold ornaments in the period April 2000-December 2014 were US$ 476 million
  6. 6. FY14 saw an increase of 12.65 per cent in export of cut and polished diamonds with the segment reaching US$ 19,635 million. India imported 163.11 million carats of rough diamonds worth US$ 16.34 billion and exported 36.46 million carats of polished diamonds valued at US$ 20.23 billion The country exported gems and jewellery worth US$ 36.04 billion in 2013. Also, platinum jewellery could breach the Rs 2,500 crore (US$ 402.95 million) mark in FY15
  7. 7. GEOGRAPHICAL CLUSTERS
  8. 8. SCHEMES
  9. 9. Advance Procurement / Replenishment of Precious Metals from Nominated Agencies; Replenishment Authorization for Gems; Replenishment Authorization for Consumables; Advance Authorization for Precious Metals
  10. 10. Liberalization of import norms by RBI India has signed a Memorandum of Understanding (MoU) with Russia to source data on diamond trade between the two countries The Government of India is planning to establish a special zone with tax benefits for diamond import and trading in Mumbai, in an effort to develop the city as a rival to Antwerp and Dubai, which are currently the top trading hubs for diamond.
  11. 11. The Gems and Jewellery Skill Council of India is planning to train over four million persons till 2022 as the sector is facing shortage of skilled manpower Setting up of new institutes in major diamond cutting and processing centers 100% FDI is approved
  12. 12. PRODUCT GROUPS
  13. 13. The Product goods are as follows ~ Cut & Polished diamonds Gold Jewellery Color Gemstones Pearls Non – Gold Jewellery Synthetic Stones Costume/Fashion Jewellery Sales to Foreign Tourists Rough Diamonds
  14. 14. EXPORT MARKET AND COMPETITORS USA (28%) Hong Kong (21%) UAE (15%) Singapore (9%) Belgium (8%) OTHERs ARE… Israel, Japan, Thailand, U.K, Switzerland, Germany, Australia, South Africa
  15. 15. EXPORT PERFORMANCE
  16. 16. Spotlight on Exports Indian gems and jewellery are exported across continents. In FY 2013–14 - contributed around US$ 34,993 million to India's FEEs In FY 2013-14, India exported polished and cut diamonds valued at around US$ 19,643 million and coloured gemstones worth around US$ 520 million.
  17. 17. The key export destinations in 2013-14 were UAE with 35 per cent of export valued at US$ 12 billion Hong Kong at 28 per cent with value of US$ 9 billion USA at 14 per cent with export value of US$ 5 billion In 2014-15 – contribution of US$ 39898.81 million in terms of FEEs
  18. 18. “Make in India” GJEPC's thrust areas in alignment with the 'Make in India' campaign will mainly include implementation of the turnover taxation system for Indian Diamond Industry and implementation of Special Notified Zone to facilitate smooth movement of rough diamonds on consignment basis by RBI approved overseas diamond miners, in year 1 In the mid-term, GJEPC will champion the mission to further industry growth and strongly establish India as a global diamond trading hub
  19. 19. SUMMARY OF 2014-15 PERFORMANCE The overall gross exports of gems & Jewellery at US$ 39898.81 million (Rs. 243885.81 crores) is showing a decline of 0.62% in dollar terms and growth of 0.43% in rupee term as compared to US$ 40147.50 million (Rs. 242837.07 crores) for the period April 2013-March 2014
  20. 20. CUT AND POLISHED DIAMONDS The overall gross export of Cut & Polished diamonds at $ 23160.18 million (Rs. 141514.28 crores) is showing a decline of 5.46% (-4.50% Rs. term) as compared to $ 24498.48 million (Rs. 148185.20 crores) for the same period of previous year.
  21. 21. GOLD & SILVER JEWELLERY Provisional gross export of Gold jewellery for the period April 14 - March 15 at US$ 9852.18 million (Rs. 60198.63 crores) shows growth of 17.77% (18.64% Rs. term) Provisional gross export of Silver Jewellery for the period April 14 - March 15 at US$ 2054.52 million (Rs. 12583.73 crores) shows growth of 39.29% (41.41% Rs. term)
  22. 22. SWOT ANALYSIS
  23. 23. STRENGTHS Large integrated diamond & jewellery players and having an international presence. Strong marketing & distribution network. Strong retail presence in India and in U.S. Strong brand equity and broad product range like Gitanjali, Tanishq, Joylukkas, etc Highly skilled, qualified and motivated employee.
  24. 24. Weaknesses  There may be conflicts of interest between organized & unorganized players.  As the major raw material requirements need to be imported, companies normally stock huge quantities of inventory resulting high inventory carrying costs.  Technology is less improved compared to China and Thailand’s company. Opportunities  New markets in Europe & Latin America.  Growing demand in South Asian & Far East countries.
  25. 25. THREATS International Competition:-China, Sri Lanka and Thailand's entry in small diamond jewellery. Increase in the price of Gold & Diamonds. Other local competitors. According to the data 97% jewellery sales are by family jewelers. Threat from producing nation like S.A. & Russia Fluctuations in Exchange Rate
  26. 26. Thank You

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